United States Heading towards a Depression?

Only possible if supply = ∞ or demand = 0.

 

Bernanke says crisis not over

http://news.yahoo.com/s/nm/20080514/bs_nm/usa_fed_bernanke_dc;_ylt=AhyDJl0nTvuSf.OymAgDOD.yBhIF

 

Of course it's not over. It's just starting.

To quote smatts,

 

It will get very nasty! Dollar dropping, energy prices up, oil all time record high, our government spending out of control, a never ending war on so called "terror" that is bankrupting us...of course we are heading for the meat grinder. If you are middle or lower class it will be very very very painful!!!

 

Yes, doom and gloom abounds.. Your country sounds like it has some problems...

 

I'd like to see population: 1 before I die.

 

Do you understand what I wrote before about infinity + 0?

 

NBER's Feldstein sees U.S. downturn since Dec-Jan. The NBER typically declares start and end dates for U.S. recessions.

NBER's Feldstein says that the current crisis is different from the two last U.S. recessions and it's too early to tell if this one would be deep.

http://www.forbes.com/reuters/feeds...RTRIDST_0_USA-ECONOMY-FELDSTEIN-UPDATE-1.html

 

I don't think Bernanke's solution is so novel as he'd like to make us believe. Frankly, he's just throwing money at the big banks and now they're moving into the process of shutting down the small and medium sized banks. Inflation is built in until at least the elections, and from there we have a bunch of "change" they want us to pay for.

$5 gas by 2009, could go higher if Obama's new-New deal is debt financed

 

You want to talk about inflation. The housing bailout is killing the dollar. The Democrats don't know when to stop. Bush has threatened to veto a House-passed Democratic bill that would have the government insure $300 billion in new mortgages for failing homeowners. Bush called it a bailout for lenders and housing speculators.

http://www.twincities.com/business/ci_9315263?source=rss

 

Where was Bush's veto pen when he was ringing up $4 trillion in debt?

 

Oil is at $129 and another housing bailout will make it hit $150

The next step is the revaluation of the Yuan which has already gained 4% this year and broke the 7 yuan to dollar barrier. The current rate is 6.98 to the dollar. If that happens Walmart is not going to be cheap anymore.

This is still a lot of unwinding to take place in housing and more bailouts will make the situaution worse.

 

I think Chase is either in trouble, or may be setting themselves up for sale...

 

Chase isn't in trouble, I get offers from them every week to borrow against my credit line at a 2.99% rate for life. My mailbox is stuffed with all this credit, they're doing just fine.

 

Actually they are in trouble.. I get offers like that as well...

Those same offers they send out asking you to borrow are generally followed up by cancellations of credit lines, and revaluations of existing CURRENT mortgages, by current, I mean ones that are in good standing.

Chase has given out so many bad loans they are now killing lines of credit, unused lines, and devaluing current valuations on current homes that do have equity in them and are current in an effort to scale back their own de-valuation.

Chase is either in some serious trouble, or looking to sell.... Wait and see.

 

Oh ok. I just got the odd thought that my mailbox was an economic indicator. How silly of me.

 

Chase is part of JPMorgan Chase. JPMorgan Chase is getting ready for a severe recession similiar to 1982. Howver, this one could be worse ... The worst recession since the great depression. 1982 was bad. Interest rates topped 20% and by November 1982, unemployment reached, nine million or 10.8 percent, the highest rate since the Depression.

JPMorgan Chase CEO James Dimon: "The recession just started."

"We're thinking there's a third of a chance that it's going to be pretty bad ... closer to the 1982 recession than the very mild recessions we had in 2001 and 1990."


http://news.yahoo.com/s/ap/20080512/ap_on_bi_ge/jpmorgan_chase_ceo;_ylt=AlQZQjmUNb.3IVWEFptaO_SyBhIF